Nortel Sells Wireless Assets to Nokia Siemens Networks

In a move that will reassure Sprint Nextel and Verizon Communications and give Nokia Siemens Networks greater presence in the North American wireless market, Nortel is selling its wireless business units to NSN for $650 million. The move also is among steps Nortel is taking to essentially liquidate itself. 

Under the proposed deal, more than 2,500 Nortel staff will become employees of NSN. Though NSN also is acquiring Nortel's Long Term Evolution portfolio, perhaps the more-important near-term asset is the Code Division Multiple Access portfolio, used by Verizon and Sprint Nextel as well as Bell Mobility. 

The sale effectively makes NSN a key supplier to all three networks.